Taxpayer Wins Prompt GST Refund Order, Authorities Must Process Claim Within 14 Days Under Section 54(7)

HC directed tax authorities to process petitioner's refund application under GST Act within two weeks, emphasizing compliance with Section 54(7) and Circular No. 125/44/2019-GST. The court mandated timely disposal of the refund claim and allowed petitioner to pursue additional legal remedies if unsatisfied with the outcome.

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Issues involved:
Petitioner seeks a direction for refund u/s 54 of the Central Goods and Service Tax Act, 2017 and guidelines for timely processing of refund applications.

Refund Processing and Timely Disposal:
The Court referred to Section 54(7) which mandates the proper officer to pass an order within 60 days of receiving a complete application. Circular No. 125/44/2019-GST provides modalities for refund applications, including uploading necessary documents on the common portal. The Circular also states that if a refund is not issued within 60 days, interest at 6% must be paid until the amount is credited to the applicant's bank account.

Compliance with Circular and Statutory Provisions:
The Court emphasized that proper officers must adhere to the Circular and Section 54(7) of the Act. No further directions are necessary as the Circular already provides guidelines for processing refund applications within the stipulated time frame.

Specific Case of the Petitioner:
The petitioner filed a refund claim on a specific date and claimed that no deficiency memo has been issued yet. Since the 60-day period has lapsed, the proper officer is directed to expedite the processing of the refund application and dispose of it within two weeks, considering the Circular and statutory provisions.

Disposition and Further Remedies:
The petition is disposed of with the direction for the proper officer to process the refund application within the specified timeline. The petitioner is allowed to seek further legal remedies if unsatisfied with the decision of the proper officer.

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